How Augmented Reality is Changing the Retail Industry

In the past few years, augmented reality has become a part of many industries. People discovered they could do more with this technology than just create mobile video games like Pokemon Go. AR improves education, archeology, urban design, and industrial manufacturing. Retailers vigorously implement AR in their daily work.

By the end of 2022, more than a quarter of shoppers claimed to use AR regularly. Most of the respondents expressed a high level of satisfaction with this technology. Home Depot, Walmart, NIKE, and IKEA are some of the companies that fully embraced the use of augmented reality. There are several reasons why it will remain a game-changer for many years.

Increases Sales and Customer Engagement

AR makes customers more willing to buy from particular retailers. Companies understand the impact of this commitment and do everything to harness the advantages of AR. Much like an essay writing service, they can cater to all sorts of customers. This technology offers both educational and entertaining elements for people to explore.

Starbucks is one of the most famous corporations that uses AR to generate buzz and curiosity among its customers. The coffee chain was among the first to introduce an augmented reality experience. In  2017 the company offered it to the visitors of the first Starbucks Reserve Roastery in Asia.

Customers could see a new world when they pointed their phones at the rotating cask located in the store. With the use of the Starbucks-made app, everybody could witness the journey a roasted bean took before it became a cup of coffee.

Improves ROI and Makes Easier Trials

In the past, retailers spent a lot of time on tryouts and trials of their products. The rise of AR made this process a lot faster and less time-consuming. Nowadays, customers try out new clothes and accessories in a semi-virtual space. There are several companies that use this tech to their advantage:

Augment reality drastically reduces the time people take to try on items. Companies have seen tremendous growth in conversion rates and sales with the help of this tech. AR helps people better navigate a post-Covid world. They can try on new things without physically visiting stores.

Builds Customer Loyalty Through Customization

People are more likely to buy products they can adjust to their needs. Retailers have caught up with this trend and given their clients more customization options. Augmented reality became an invaluable tool in this process. For example, if you want to buy a Vespa scooter from Piaggio, there’s an app you can use to edit it, like in a video game.

People may edit the scooter’s color and style, add or remove accessories, and do other things. This approach allows companies to find new clients and get information about their tastes. The freedom of choice when it comes to products drastically improves customer loyalty. Clients remember how the company treats them and come back for more.

Creates An Organic SM Marketing Impact

Retailers use AR technology to increase the power of their social media advertisements. Companies release augmented reality programs that serve as organic marketing tools. They use these apps to showcase the power of their products. For example, Ulta Beauty released a package of filters for the Snapchat app a year ago.

These filters allowed the app audience to take photos with Ulta Beauty’s makeup filters. They would later share these snaps with friends on various social media platforms. Those happy with the results can buy Ulta Beauty products directly through Snapchat. 

This way, the company generated a lot of noise about its brand and got information about its clients. According to Snapchat data, its users, most of whom are Gen Z, apply AR filters more than 6 billion times daily. This approach resulted in over $6 million in sales.

Reduces Staff Expenses

The use of AR reduces the costs of hiring and managing employees. Since clients largely choose and buy products online, there’s less need for people working in physical space. AR also helps visitors navigate around stores and offers extensive data on the products they might be interested in. Amazon has already experimented with the idea of cashier-free stores.

By 2020 the corporation announced new locations for its Amazon Go chain in London, New York, Chicago, San Francisco, and other large cities. Visitors went through self-checkout stations. Unlike other ventures of the retail giant, this innovation didn’t gain the momentum it hoped for. This year the company announced the closing of 8 Amazon Go stores.

Helps Customers Make More Informed Decisions

People often can’t decide when thinking about buying a product. Sometimes, they leave the stores to weigh their options with a clear head. Retailers make item-related materials AR-integrated to give their customers better information. This can be something as simple as paper brochures.

People make more informed choices by looking at products through their phone cameras. Brands like Philips include AR tags along with their items. Individuals scan them and receive detailed info about a vacuum cleaner or a coffee maker. And without requiring the aid of store consultants.

Final Thoughts

The current AR influence on retail shows that the industry will continue adopting this technology. It frees up a lot of time and funds on retaining employees and marketing campaigns. But, it also brings many perks for the customers. They can use AR to make more reasonable decisions, browse items, and feel happier after each buying experience.